Arrowstreet Capital Limited Partnership Decreases Stock Holdings in Rush Enterprises, Inc. $RUSHA

Key Points

• Arrowstreet Capital reduced its Rush Enterprises stake by 16.7% in the first quarter, selling 57,902 shares and retaining 288,100 shares valued at approximately $19.0 million. Institutional investors collectively own 84.43% of the company.
• Rush Enterprises reported quarterly EPS of $0.91, beating the $0.86 consensus, while revenue of about $1.90 billion modestly exceeded forecasts. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $87.
• The company declared a $0.14 quarterly dividend and is scheduled to complete a 3-for-2 stock split on August 11. Shares recently traded near their one-year high, potentially increasing the risk of profit-taking if truck demand or margins weaken.

Arrowstreet Capital Limited Partnership lowered its holdings in Rush Enterprises, Inc. (NASDAQ:RUSHA - Free Report) by 16.7% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 288,100 shares of the company's stock after selling 57,902 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 0.37% of Rush Enterprises worth $19,046,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Dimensional Fund Advisors LP raised its position in Rush Enterprises by 0.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,774,824 shares of the company's stock valued at $203,618,000 after purchasing an additional 29,375 shares during the period. State Street Corp boosted its position in shares of Rush Enterprises by 0.3% in the second quarter. State Street Corp now owns 2,359,238 shares of the company's stock worth $121,524,000 after buying an additional 6,994 shares during the period. Jennison Associates LLC boosted its position in shares of Rush Enterprises by 166.4% in the first quarter. Jennison Associates LLC now owns 1,121,450 shares of the company's stock worth $74,139,000 after buying an additional 700,511 shares during the period. Global Alpha Capital Management Ltd. grew its stake in shares of Rush Enterprises by 20.6% in the fourth quarter. Global Alpha Capital Management Ltd. now owns 1,012,486 shares of the company's stock valued at $54,613,000 after buying an additional 173,096 shares in the last quarter. Finally, Beck Mack & Oliver LLC grew its stake in shares of Rush Enterprises by 1.5% in the fourth quarter. Beck Mack & Oliver LLC now owns 983,896 shares of the company's stock valued at $53,071,000 after buying an additional 14,995 shares in the last quarter. Institutional investors and hedge funds own 84.43% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages recently commented on RUSHA. Wolfe Research assumed coverage on Rush Enterprises in a report on Monday, April 27th. They set an "outperform" rating and a $88.00 target price on the stock. Wall Street Zen cut Rush Enterprises from a "buy" rating to a "hold" rating in a report on Sunday, June 14th. Zacks Research raised shares of Rush Enterprises from a "strong sell" rating to a "hold" rating in a research report on Monday, June 29th. Weiss Ratings upgraded shares of Rush Enterprises from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 23rd. Finally, Stephens boosted their target price on shares of Rush Enterprises from $90.00 to $95.00 and gave the stock an "overweight" rating in a research report on Thursday. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, Rush Enterprises presently has a consensus rating of "Moderate Buy" and an average price target of $87.00.

Key Rush Enterprises News

Here are the key news stories impacting Rush Enterprises this week:

• Positive Sentiment: Quarterly earnings beat expectations. Rush Enterprises reported second-quarter EPS of $0.91, above the $0.86 consensus estimate, while revenue of approximately $1.90 billion was slightly ahead of forecasts. Its diversified truck dealership, parts and service operations helped produce steady results amid an early recovery in commercial vehicle markets. Rush Enterprises Earnings Spark Fresh Interest
• Positive Sentiment: Stephens raised its price target. The firm increased its target from $90 to $95 and maintained an “overweight” rating, implying meaningful upside from the recent trading level. Other commentary also characterized analysts as bullish on RUSHA. Analysts Are Bullish on Rush Enterprises
• Positive Sentiment: A quarterly dividend was declared. The company approved a $0.14-per-share dividend, payable September 24 to shareholders of record September 9, providing a modest recurring shareholder return.
• Neutral Sentiment: A 3-for-2 stock split is scheduled for August 11. New shares will be distributed after the August 10 market close. The split may improve trading accessibility and investor interest, but it does not change the company’s underlying valuation or intrinsic value per shareholder.
• Negative Sentiment: Recent momentum may be prompting profit-taking. RUSHA reached a new one-year high after the earnings beat, and the subsequent retreat could reflect investors locking in gains. The stock also trades at a forward-looking valuation that leaves it exposed to disappointment if truck demand or margins weaken.

Rush Enterprises Stock Performance

Shares of Rush Enterprises stock opened at $79.93 on Friday. The firm has a market cap of $6.21 billion, a PE ratio of 24.08, a price-to-earnings-growth ratio of 1.81 and a beta of 0.89. The firm's 50-day simple moving average is $72.36 and its 200-day simple moving average is $69.82. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.37 and a current ratio of 1.45. Rush Enterprises, Inc. has a 1 year low of $45.67 and a 1 year high of $83.50.

Rush Enterprises shares are scheduled to split on the morning of Tuesday, August 11th. The 3-2 split was recently announced. The newly issued shares will be issued to shareholders after the closing bell on Monday, August 10th.

Rush Enterprises (NASDAQ:RUSHA - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The company reported $0.91 EPS for the quarter, topping analysts' consensus estimates of $0.86 by $0.05. The business had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.89 billion. Rush Enterprises had a return on equity of 11.65% and a net margin of 3.67%. Equities analysts forecast that Rush Enterprises, Inc. will post 3.75 earnings per share for the current fiscal year.

Rush Enterprises Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Wednesday, September 9th will be given a $0.14 dividend. The ex-dividend date is Wednesday, September 9th. This represents a $0.56 annualized dividend and a dividend yield of 0.7%. Rush Enterprises's dividend payout ratio (DPR) is presently 22.96%.

Rush Enterprises Profile

Rush Enterprises, Inc, headquartered in New Braunfels, Texas, is a leading distributor of commercial vehicles and related products in the United States. Through its Rush Truck Centers subsidiary, the company sells new and used medium- and heavy-duty trucks, buses and specialty vehicles, while also offering factory-authorized parts, collision repair, maintenance and warranty support across its network of dealerships.

Founded in 1965, Rush Enterprises has grown to encompass more than 150 locations in over 20 states, partnering with major manufacturers including Kenworth, Peterbilt, Freightliner, Volvo and Mack.

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